Overview of UAE Four Wheeler aftermarket service industry
“UAE
Automotive Aftermarket Service Industry Outlook to 2026: Driven by increasing
number of startups and consumers' shifting preference towards online and
organized sector” The Four
Wheeler Aftermarket service industry in UAE recorded a CAGR of ~xx% on the
basis of revenue in between 2016 and 2021. The Industry is currently in a
Stagnant Growth phase, where neither much growth nor a decline has happened.
The market growth can be
attributed to the rapidly expanding automobile industry and enhanced focus of
the automobile drivers on boosting their vehicle performance and efficiency in
terms of exhaust sound, speed, and appearance parameters. Rising consumer
awareness regarding repair and proper maintenance of vehicles and growing need
for long-distance vehicles are fuelling the market growth.
The rapid adoption of online
platforms by the market players and the use of advanced software and
technologies create lucrative growth opportunities for the UAE automotive
aftermarket. Due to the stable fuel prices and high disposable income, there is
high demand for private vehicles among consumers. Consumers are moving towards
increased convenience and comfort and are availing of the aftermarket services
through the online sales platform.
There has been a shift towards
usage of private transportation which can be seen from increased vehicle usage
in 2021. Advent of online portal distributing aftermarket components and
companies shifting to the digital platforms is one of the driving factors for
the growth.
Due to the economic pressures, it
is expected that consumers are postponing their new car purchases for the next
few years which would increase the average age of a vehicle, this would result
as a positive gain for the aftermarket service industry. People's behaviour is
now shifting towards Online and Organised sector due to convenience, comfort
and reliability, and more Startups are coming up with these solutions of
providing services for four-wheeler Aftermarket.
UAE
Four Wheeler Aftermarket Service Industry Size, 2016-2021
Four Wheeler aftermarket services
industry in UAE generated a revenue of USD xx million in FY’21 growing at a
CAGR of xx% during FY’16 and FY’21.
The Industry is currently in a
Stagnant Growth phase, where neither much growth nor a decline has happened.
Overall, from an Organised to the
unorganised sector, Industry has seen some growth where new Startups like
Carcility, Mysyara are coming into picture
Traditional players like AG cars,
Auto trust, Auto Central, Gargashauto, etc are being aggressive with their
approaches too.
The number of vehicles serviced
in UAE stood at xx Units in FY’21 with a growth rate of xx% from FY’20 growing
at a CAGR of xx% during FY’16 and FY’21. People's behaviour is now shifting
towards Online and Organised sector due to convenience, comfort and
reliability, and more Startups are coming up with these solutions of providing
services for four-wheeler Aftermarket.
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UAE Four
Wheeler Aftermarket Service Industry segmentation, 2016-2021
By Type of Workshop: Multi-brand workshops dominated the aftermarket
service industry in 2021 with a share of xx% as compared to OEMs. Consumers
preferred multi-brand workshops for servicing and maintenance requirements of
their vehicles due to its ease of access and general availability coupled with
lower priced services they offer.
By Type of Vehicle: Revenue generated from aftermarket services by
Sedans and SUVs accounted for a cumulative share of xx% in 2021 as compared to
other type of vehicles
By Type of Multibrand: Revenue generated from aftermarket services
through organized multi-brand workshops
By Age of Car: Revenue generated by cars within the age of 8-13 years contributed to a
maximum share of XX% as compared to cars within other brackets
By Region: Dubai
dominated the four wheeler aftermarket in UAE with a share of xx% in 2021 on
the basis of revenue generated and with a share of xx% on the basis of number
of workshops present. The northern emirates which include Fujairah, Ajman, Ras
al-Khaimah, and Umm Al Quwain generated a revenue of USD xx Mn capturing a
market share of xx%.
By Booking Mode: Due to the large presence of organized players in UAE, online booking
mode was the preferred choice of consumers as they conducted workshops only
through online booking as of 2021. The majority of the retailers are shifting
towards the online sales platform to expand the consumer base and reach remote
locations.
By Car Brand: Toyota dominates the UAE Four Wheeler Aftermarket Services by
contributing xx% of the total revenue amounting to USD xx Mn. Toyota, Nissan
and Mitsubishi capturing ~xx% of the total revenue generated from four wheeler
aftermarket services in UAE.
By Service
Split: Revenue
generated from Non-Crash Repair Services stood at USD xx million, accounting
for the highest share of xx% in 2021. Oil change, engine oil filter, tire and
battery replacement among others form the major components of mechanical and
electrical services. Unorganized Multi Brand workshops offer services like oil
& filter change, lubricants etc. and other mechanical works like bumper
fitting, A/C services, Accidental repair etc.
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Ankur
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